BU 111

What are the KSFs?

• Financial Performance (achieving financial performance)

• Employees (employee commitment)

• Customers (meeting customers)

• Products & Services (quality products and services)

• Innovation (encouraging innovation)

• Uniqueness (competitive advantage)

What are the KPIs?

• Revenues, profit, growth, ROI, firm value

• Turnover, applications, productivity

• Market share, share of wallet, churn, net promoter score

• Returns, defects, warranty claims, waste

• New products, new approaches, idea generation, cycle time

• Strong, unique reputation, superior comparative performance

3 characteristics of a good solution

• Feasible - has or. can get resources to implement

• Complete - outlines ALL key activities

• Effective - achieves objectives and meets KPI

Case analysis process

• Identify issues

• Identify objective

• Identify constraints

• Identify and apply relevant models & do research

• Develop and evaluate options

• Propose good solution with implementation

• Identify risks, mitigation and contingency strategies

• Demonstrate impact

What is an immediate issue?

• The “in your face” issue/question

• Usually stated in intro

What is an underlying Issue?

• The cause of the immediate

• If case in an opportunity pursuit, underlying issue is aspiration (why are we chasing this?)

What tool can help you understand the understand the issue?

The issue tree - Profitability framework

What does the “big question” identify?

• The underlying cause/key challenge or constraint

• Serves as “North Star” to guide our recommendation

What are the two kinds of objectives?

1. Given in case - obvious

2. Aspirational - long term - what else do we want no and in the future

Difference between objectives and decision criteria

Objective:

• Achieves this

• Purpose of solution - KPI

• Usually explicitly given

Decision criteria:

• Achieves objective while ensuring dc

• Describe a good solution

• Key performance DRIVERS

• KSF

BOTH CAN BE QUALITATIVE OR QUANTITATIVE

Decision Criteria

• Needed to judge options or ensure solution adreses key objectives

• 2-4 criteria (3 is sweet spot)

• Satisfy KSFs of solution

• Address or stay within constraints or preferences

• Support aspirations/visions/top priority

Risks vs mitigation vs contingency

Risks: Arise from assumptions or uncontrollable variables in the risk implementation plan

Mitigation: Strategy reduces likelihood it will occur

Contingency: What to do IF risk occurs (cant be going back to a completely different strategy option)

Porters 5 Forces

1. Industry competitors (rivalry among existing firms)

2. New entrants

3. Suppliers

4. Buyer

5. Substitutes

Porters Generic Strategies

• Cost leadership

• Cost focus

• Differentiation

• Differentiation focus

List the factors in the Diamond - E framework

• Organization

• Management preferences

• Strategy

• Resources

• Environment - PEST Porters’s 5

What does PEST stand for?

Political
Economic
Social
Technology

A good strategy requires both internal consistency and external alignment. What do these mean?

Internal Consistency: good execution, able to pursue

External Alignment: right strategy for environment, worthwhile pursuing

Why is the Diamond-E arrow between strategy and environment double headed?

Because we become part of the environment, our strategy changes the environment for other companies just like how the environment impacts our strategy

What are management preferences? (🔷 E)

Focuses on leadership of organization: Vision, mission, preferences and biases. Influence on strategies and priorities.

What are some questions to ask about management preferences? (🔷 E)

1. What does management want? Ambitions? Objectives?

2. What are its priorities?

3. How comfortable is it with risk?

4. Does it value/is it more comfortable with some capabilities/strat?

5. Does it value some capabilities or resources more than others

What is organization? (🔷 E)

• Culture - “who” are we? (cultural norms, what are we comfortable doing)

• Capabilities - what are we good at?

• Structure - how do we divide work?

What are some questions to ask about organization? (🔷 E)

1. What is our organization good at, and where are our capability gaps?

2. Is our organization structured effectively to support our strategy?

3. What values guide how our organization operates?

4. Does our organization encourage employees to share ideas and take initiative?

What are resources? (🔷 E)

• Human - how many ppl, what are their skills

• Capital - assets, includes intangible assets (patents create barriers)

• Financial - more money = more options

What questions can we ask about resources? (🔷 E)

1. Do we have enough financial resources to execute our strategy?

2. Do we have enough production capacity to meet our needs?

3. Can we change what or how we produce?

4. Do we have the talent and labour needed to execute our strategy?

Why do we use KSFs?

• They guide strategic and daily actions

• Ensure success over time

• Ensure holistic thinking (always be thinking about causes, whats driving the problem, WHY?)

What to look for in horizontal analysis?

Changes in relevant items over time

What to look for in vertical analysis?

• Is something really big or too small relative to revenues or profits?

• Compare to industry averages (only look at relevant items)

What does complete mean?

It includes strategic, tactical, and operational elements needed for successful execution.

What does effective mean?

The solution achieves the objective and leaves the company better off.

What does MECE stand for?

Mutually Exclusive, Collectively Exhaustive

What does mutually exclusive mean?

Each component is unique and does not overlap with another.

What does collectively exhaustive mean?

Together, all components provide a complete picture of the issue.

What should you identify after the big question?

Objectives, aspirations, and decision criteria.

What does Porter’s Five Forces analyze?

Industry forces affecting profitability, competition, entry, buyers, and suppliers.

What does Porter’s Generic Strategies help determine?

Whether to pursue cost leadership, differentiation, cost focus, or differentiation focus.

What are the 3 characteristics of good evidence?

Relevant, reliable, and recent.

When should quantitative information usually be cited?

Almost always, because it is rarely common knowledge.

What is an endnote?

A superscript number in the text that corresponds to the complete source in the References list

What are the 4 reasons to cite sources?

Give credit, demonstrate research, reinforce arguments, and help readers find the original source.

What happens to the title if there is no author?

The document title moves over and serves as the author.

What edition of APA does BU111 use?

APA 7th edition, with a modification using superscript numbers instead of regular in-text citations.

What date should normally be used in BU111 references?

The year only.

When do you use “Retrieved on” in a reference?

When the content of a webpage may change over time.

What are key success factors?

Activities and resources crucial to efficient, effective long-term success.

What are 4 employee commitment KPIs?

Turnover, absenteeism, applications, and productivity.

What are 4 customer KPIs?

Market share, share of wallet, churn, and net promoter score.

What does quality in products/services mean?

Delivering value, consistency, and reliability at a level appropriate to the price.

What are 3 product/service quality KPIs?

Returns, defects/warranty claims, and waste.

What are 3 innovation KPIs?

Idea generation, proportion of ideas implemented, and cycle time.

What is distinctive competitive advantage?

Being different from competitors in a way that is strategically and financially valuable.

What are 3 uniqueness KPIs?

Market research, financial statements, and performance versus competitors.

What are 5 financial performance KPIs?

Revenue, profit, profit margin, ROI, and firm value.

How do key success factors blend internal and external factors?

Internal actions affect performance, while external conditions shape what works and is valued.

What does “MUST” mean in the Diamond-E?

External constraints and circumstances the firm must work within.

What does “WANT” mean in the Diamond-E?

What management is willing or chooses to do.

What does “CAN” mean in the Diamond-E?

What the organization has the resources and capabilities to do.

How do Managerial Preferences affect Strategy?

They shape how management interprets opportunities, threats, and strategic choices.

How does Strategy affect Managerial Preferences?

Successes and failures influence future management choices.

How do Resources affect Strategy?

Resources determine which strategies are feasible.

How does Strategy affect Resources?

Strategy determines which resources need to be acquired.

How does Organization affect Strategy?

Capabilities and structure determine which strategies can be executed.

How does Strategy affect Organization?

Strategy influences capabilities and the structure needed for implementation.

Why is the Diamond-E useful?

It assesses strategy fit and identifies resources/capabilities needed for success.